FBR Withdraws Export Facilitation Scheme for Iron and Steel Scrap Importers
The Federal Board of Revenue (FBR) has moved with a strong hand against the abuse of the Export Facilitation Scheme (EFS) 2021, specifically by iron and steel scrap importers. The FBR has issued SRO 204(I)/2025, which formally withdraws the EFS facility from importers who were taking advantage of the system to bring in car spare parts under the export scheme.
This step comes after several amendments to the EFS-2021, seeking to limit misuse and enhance compliance. The amended procedure involves modifications such as:
Shortening the period of utilization of inputs
Revising input authorization to take account of production capacity and input-output ratios
Substituting insurance guarantees with bank guarantees
Enhancing vendor facilitation controls
Scrip-ing the EFS facility for importers of iron and steel scrap
The new regulations necessitate that foreign goods be put to use in nine months, extendable only on a case basis by a special committee.
The international tenders or projects eligible for exemption of customs duties, users will need to submit a declaration in WeBOC’s system, under the new order.
The FBR has also brought stricter controls for users with poor compliance history. Where an applicant is found to have cases of non-compliance, under consideration for recovery, or criminal proceedings, the authorization can be suspended forthwith. The regulatory collector may even revoke the authorization and initiate legal action.
The input goods’ value should be uploaded yearly according to the estimated needs. Only next year’s uploading shall be possible if the user has no outstanding issues with the Customs Act and has uploaded all reconciliation statements that were due.
